Pricing is one of the most important but least understood marketing decisions. Learn and practice concepts, techniques, and get to grips with the latest thinking on assessing and formulating pricing strategies. Analyze how firms attempt to capture value, as well as profits, in the revenues they earn.
After this course, you will be able to contribute to the process of formulating pricing strategies for your own products and services, or those of your firm. This course has an additional focus on pricing dynamics and the reaction to and by competitors, taking a highly pragmatic approach and one that is directly applicable to your day-to-day professional life.
Martin Boehm - IE Professor and Dean of the Business School with over 10 years experience - will guide you through four modules. We begin with the importance of pricing and how it ultimately can affect the bottom line. Then, we move on to methods to help you decide what is the optimal price for your product; and then price discrimination - should all your products follow the same pricing strategy or should you differentiate depending on the customer segment? Finally, we look at pricing psychology and how you can manipulate customers in order to drive the highest possible price for your product.

Avaliações

SR

Great course. All the concepts were clearly explained. They had provided plenty of case studies, articles, journals and books to read. The content delivery was great. I found it very useful.

JS

Jul 22, 2019

Filled StarFilled StarFilled StarFilled StarFilled Star

Good course on pricing. It was a review of a similar class I have taken elsewhere, but even so I learned new concepts or ways to approach pricing. Some of the readings were very technical.

Na lição

Demand Curve and Pricing

In this module we will start with the importance of pricing, especially for the bottom line. Having this in mind, and after showing how pricing is the most important driver of profitability, when you finish this module you will be able to execute cost, competition and customer-based pricing. You will also be able to use the concepts of price elasticity and optimal price while setting prices for your products and services.

Ministrado por

Martin Boehm

Transcrição

[MUSIC] In the previous module we looked into the importance of pricing and more specifically the economic underpinnings of pricing. This time we're going to focus on the dark side of pricing, and more specifically, the complexity of pricing. Some research conducted a couple of years ago across marketing managers has shown that pricing is at the top of the list of the issues they're facing in a day to day business. It seems that pricing generates a lot of headaches for these guys. The question is, why is this the case? And there are actually multiple reasons why pricing is perceived by marketing managers as being so complex. The first reason is that pricing has to be in sync with the other piece of the marketing mix. Those of you interested in a marketing mix specialization will learn much more about this because the marketing mix consists not only of price, but focuses as well on product, place and promotion. We can't take pricing decisions in isolation. We have to take into consideration as well, the product we're selling, the product we're producing, where we actually sell this and what kind of promotion we use in order to communicate to our customers. The second reason why pricing is perceived as being so complicated is that within organizations there might be very different objectives when pursuing or trying to set the right price. As you know, organizations consist of different departments or different functions that might include the marketing department, the finance department, the production department, and we shouldn't forget, obviously, the CEO of the organization. All of these different departments or functions might have very different objectives when it comes down to setting the right price. The production department typically will favor a slightly lower price In order to drive volume and increase the efficiency of the production facility. Marketing typically favors a higher price in order to reflect a premium quality of their product. The CEO typically is concerned about market share. Very often what we see is they just want to be the biggest player or the biggest fish in the pond, so they will do everything in order to have the right price in order to achieve their marketing share objective. The last reason why pricing is perceived as being so complex is that typically we don't only set one price but very often we have to set multiple prices. Let's illustrate this using our lemonade example. We probably can think of multiple prices, or different prices depending on whether it's a hot summer day, or whether it's a cold winter day. We're probably going to charge as well different prices whether we're going to be selling a large cup or a small cup. Or you could even think of making our business mobile and moving from one neighborhood to the other. Probably you want to adjust as well your prices according to the economic level of this particular neighborhood, and adjust your prices a little bit higher for those neighborhood where you know where a lot of disposable money is available, and lower your prices where maybe their economic echelon is slightly different. [MUSIC]